Family foundations in Poland: Are tax changes on the horizon?
In recent months, there has been increasing discussion in Poland about the future of family foundations. These institutions, introduced into Polish law in 2023, are intended to help entrepreneurs pass on their assets to future generations. Thanks to them, companies can remain in family hands for many years, which fosters the stability of the Polish economy.
Currently, family foundations benefit from favorable tax rules. Income tax is only paid at the moment money is distributed to beneficiaries, i.e., family members. However, experts from the consulting firm Deloitte point out that the Ministry of Finance is considering introducing changes to these regulations. The reason is the concern that some individuals may be using foundations primarily to avoid paying taxes rather than to protect a family business.
The debate on this topic is sparking strong emotions among entrepreneurs. Many of them emphasize that family foundations are a tool that provides security and allows for planning company growth for decades. Changing the tax rules could discourage business owners from using this solution, which could consequently have a negative impact on investments in Polish enterprises.
On the other hand, the Ministry of Finance argues that the system must be airtight and fair for all taxpayers. Officials are analyzing whether current regulations allow for excessive tax benefits in situations that are unrelated to business succession. Consultations are underway to clarify whether the introduction of new restrictions is necessary.
At this moment, no final decisions regarding changes to the taxation of family foundations have been made. Entrepreneurs and their advisors are waiting impatiently for official government announcements. For many Polish family businesses, the coming months will be crucial for planning their future financial strategy.